“Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Thursday set aside sector regulator Trai's rule on predatory pricing for lack of transparency in the guidelines over determining market share and rates of services,” the PTI report suggested.
The move comes as a major relief to Bharti Airtel, Vodafone and Idea Cellular (Now Vodafone-Idea Ltd) which had in March challenged the amendment made by Trai in the Telecommunication Tariff order, added report. CLICK HERE TO READ FULL REPORT
“The battle for market share with low ARPU plans continues unabated in the telecom industry. Since the launch of RJio, Bharti has maintained its market share for the last two years. Strong network investments and customer insights have allowed it to restrict customer churn. We expect Bharti’s market share to remain firm as it has the opportunity to gain during a period when the largest industry player is in the middle of a huge network integration exercise. However, on the flip side, falling operating cash flow, high capex and ballooning debt (net debt of Rs 1150 billion) create urgency for raising equity through Africa IPO and Bharti Infratel stake sale,” Motilal Oswal Securities said in telecom sector report dated November 19, 2018.
At 11:00 am; Bharti Airtel and Vodafone Idea were up 7% at Rs 324 and Rs 37.45, respectively. In comparison, the S&P BSE Sensex was trading 0.03% down at 35,920 points.